Treasury Reports $1.2 Trillion Deficit For First 8 Months of Fiscal Year 2023
In the first eight months of Fiscal Year 2023, the United States borrowed $1.2 trillion, including $240 billion in May, according to the latest Monthly Treasury Statement from the Treasury Department. Deficits over the past 12 months have totaled $2.1 trillion or 8.1 percent of GDP, more than triple the historical average share of GDP.
The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:
Revenue is down, spending is up, and our borrowing over the past year has blown past $2 trillion – $240 billion in May alone. That’s more than triple the amount recorded in May 2022 and $4.8 billion per day since the start of this fiscal year. Our fiscal outlook needs serious change; to argue otherwise is a charade bordering on a farce.
And yet, for the first time in a long time, we have reason to be optimistic about how serious policymakers are in addressing these problems. The Fiscal Responsibility Act has been enacted as the largest deficit reduction effort in more than a decade. Not only is it a major win, but it’s also the all-too-rare bipartisan win. It’s time to build on this success and keep the ball rolling on getting our fiscal situation under control.
If we really want to get serious about debt and deficits, we need to have serious conversations about all areas of the budget – spending, revenues, Social Security, Medicare, and everything in between. A bipartisan fiscal commission could be a productive way for all sides to come together and tackle critical problems in our budget. A commission could help move the conversation forward and ensure steady progress towards putting the debt on a sustainable downward path.
Today’s Treasury numbers serve as a stark reminder that our fiscal challenges are far from over. Much more will need to be done to ensure we don’t burden future generations with a smaller economy and a larger national debt.
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For more information, please contact Matt Klucher, Communications Manager, at klucher@crfb.org.
